[Click eStock] "Samsung SDI, Beneficiary of Strong Demand for Cylindrical Batteries"

Rivian to List on US Nasdaq on the 10th (Local Time)... Samsung SDI Stock Expected to Benefit
KB Securities "Maintains Samsung SDI Target Price at 950,000 KRW"

[Asia Economy Reporter Gong Byung-sun] Samsung SDI is expected to improve its performance next year, driven by strong demand for cylindrical batteries centered on micro-mobility such as electric vehicles, electric kickboards, and electric bicycles. Accordingly, the Nasdaq listing of Rivian, an electric vehicle company adopting cylindrical batteries for electric vehicles, is also expected to have a positive impact on Samsung SDI's stock price.

On the 9th, KB Securities estimated Samsung SDI's sales next year to increase by 17% from this year to 16.02 trillion won, and operating profit to rise by 26% during the same period to 1.54 trillion won. The operating profit margin is forecasted to be around 9.6%.

Sales in the polarizing film sector within the electronic materials division are expected to decline compared to this year. This is due to the weakening benefits of the non-face-to-face trend as COVID-19 vaccination rates increase and treatments are developed.

However, growth is expected next year centered on cylindrical batteries. This is because the application range of cylindrical batteries is expanding. Beyond small IT devices, they are used in power tools, micro-mobility, and the proportion of cylindrical batteries installed in electric vehicles is rapidly increasing.

Lee Chang-min, a researcher at KB Securities, explained, "Cylindrical batteries for electric vehicles are being adopted by Tesla, Rivian, and Lucid Motors. Compared to prismatic or pouch-type batteries, the cell size is smaller, making it easier to apply a stacked structure, and the size is standardized, so the price is lower than other device forms (form factors)."

Rivian's listing is also expected to have a positive impact on Samsung SDI's stock price. On the 10th (local time), Rivian is scheduled to be listed on the Nasdaq in the United States. Rivian is attracting attention as a promising company, called the second Tesla, and is eyeing existing automakers GM and Ford.

Accordingly, KB Securities maintained its investment opinion of "Buy" on Samsung SDI with a target price of 950,000 won. The closing price on the previous day was 755,000 won.

This content was produced with the assistance of AI translation services.